Pension scheme option that allows a member to sacrifice part of his own pension to secure a pension for a dependant after his death. The maximum allowable to a surviving spouse is two-thirds of the maximum member’s pension at the normal retirement pension based on current earnings. If death occurs after retirement the dependant receives the percentage of the deceased member’s pension as stated in the rule. See COMMUTATION FACTOR.
Insurance Encyclopedia
Dependence
Exposure units are dependent if loss to one increases the probability of loss to another.
Dependency Period
The period during which children will be dependent on a surviving parent/insured.
Dependent
A person who is dependent on another person to support him or her and maintain his or her lifestyle.
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An individual who depends on another for support and maintenance.
Dependent age limitation
Age when insurance coverage stops for a dependent child who is covered under a family insurance contract or plan.
Dependent Benefits
Social Security benefits available to the spouse or children of a Social Security beneficiary.
Dependent care plan (Health Insurance)
A benefit to employees wherein the employer reimburses them for child care or provides on-site day care facilities.
Dependent Coverage
Insurance coverage on the head of a family which is extended to his dependents, including only the lawful spouse and unmarried children who are not yet employed on a full time basis, unmarried daughter, widowed daughter, divorced dependent daughter. Children may be step, foster and adopted as well as natural. Certain age restrictions on children usually apply.
Dependent coverage (Health Insurance/Life Insurance)
Insurance extended to the spouse and single children of the insured head of a family. Age limits may apply to the children.
Dependent life insurance
Group life insurance that covers the spouse, children, or other dependents of the group member. Generally it is sold in small amounts mainly to cover funeral expenses.